<div id="readability-page-1"><div>Fitch Ratings-New York-11 December 2025:Fitch Ratings has upgraded Hillman Solutions Corp. (HLMN) and The Hillman Group's Long-Term Issuer Default Ratings (IDRs) to 'BB' from 'BB-'. Fitch has also upgraded the senior secured term loan to 'BB+' with a Recovery Rating of 'RR2' from 'BB'/'RR3' as term loan repayment improves recovery prospects. The Rating Outlook is Stable.The upgrade reflects gross debt reduction and Fitch's expectation that HLMN will maintain EBITDA leverage between 2.5x and 3.0x while executing its growth strategy. Fitch expects HLMN to focus M&amp;A on smaller bolt-on acquisitions with (CFO-capex)/debt in the high-single digits to mid-teens range, which will support deleveraging capacity. HLMN has also managed tariff-linked margin impacts by diversifying supply chains and passing tariff-related costs to customers. The rating also considers the company's market position in fastener and protective solutions, FCF generation, financial flexibility, and customer relationships.Key Rating DriversMarket Leader in Niche Markets: HLMN has a strong market position in its core products of fasteners, hardware and personal protection productions, which account for 74% of its revenues. Fitch views the barriers to entry for HLMN's business are its long-standing customers relationships and its comprehensive service model. HLMN manages and distributes 111,000 SKUs directly to stores through its distribution network, and has 1,200 sales and service personnel on-site to help customers.HLMN also has a strong market position in its key duplication, Auto &amp; RFID Fob duplication and engraving offerings. HLMN has 31,500 kiosks deployed at retail partners, including more than 3,000 MinuteKey 3.5 kiosks. The segment accounts for just 16% of 2024 sales but almost 31% of the overall EBITDA given the segment's high margins and technology content. HLMN's high exposure to the repair and remodel (R&amp;R) market relative to Fitch-rated building product peers is a credit positive. Fitch views the residential R&amp;R as a more stable end-market through economic cycles than new construction activity.EBITDA Leverage Under 3.0x: Fitch expects EBITDA leverage to reach 2.6x at YE 2025 from 2.9x at YE 2024, through EBITDA expansion. Fitch believes the company could continue to pursue M&amp;A in a balanced manner, mainly targeting smaller, bolt-on acquisitions as part of its growth strategy, and remain within the company's long-term company-calculated net leverage target of 2.5x or below.Fitch expects HLMN to focus on tuck-in acquisitions like Koch Industries, Inc., a producer of ropes and chains, and Intex DIY, Inc., a supplier of cleaning textiles, to deepen and broaden the company's product portfolio and complement its organic growth strategy. HLMN can leverage its distribution network and long-standing relationships to sell its new product category into new customers.Healthy FCF Generation: HLMN has had positive FCF over the last three years and FCF margins are expected to be sustained in the mid-single-digits range, supported by healthy operating margins. Fitch forecasts FCF to be between $60 million-$100 million per annum over the forecast period. Fitch anticipates HLMN's FCF generation will provide financial flexibility or deleveraging capacity in the event of larger acquisition, as evidenced by its projected cash flow from operations minus capex to debt ratio ([CFO-capex]/debt) metrics in the high-single digits to mid-teens range.U.S.-Focused Geographic Footprint: The company operates throughout North America, with the U.S. accounting for 89% of 2024 sales. HLMN has 23 distribution centers across the continent, helping it serve 29,000 retail locations. Fitch views the company's geographic exposure as concentrated relative to similarly rated and higher-rated peers, which tend to have more international sales exposure. However, the company's strong national presence provides it with better diversity than lower-rated peers, which tend to be more highly concentrated within certain U.S. states/regions.Customer Concentration: The company has a concentrated retail customer base, and there is a risk that the loss of all or part of a large customer could substantially reduce its scale, with limited opportunity to recoup lost volumes elsewhere. The risk is mitigated by the company's track record of maintaining long-standing relationships with core hardware retailers. Home Depot and Lowes are the largest customers, accounting for 22% and 19% of 2024 revenues, respectively. These customers regularly undertaking product line reviews of their vendors every few years to determine whether and to what extent they will continue to purchase certain products from a particular vendor.Peer AnalysisHLMN's rating reflects its strong market position in the fastener and protective solutions markets, long-standing relationships with key customers, profitability and leverage metrics. HLMN is strongly positioned relative to Fitch-rated building products and distributor peers in the 'B' category Fitch-rated building products and distributor peers including New AMI I, LLC (Associated Materials; B/Stable) and Park River Holdings, Inc (Park River; B-/Stable). HLMN's EBITDA leverage is expected be under 3.0x in 2025 while Park River's leverage is elevated at around 7.0x over the same period.HLMN's credit profile is comparable with MIWD Holdco II LLC and MIWD Holding Company LLC (dba MITER Brands; MITER, BB-/Stable) with similar EBITDA margin, concentrated product portfolio and end-market exposure but lower leverage metrics.Fitch’s Key Rating-Case Assumptions--Total revenue increase by 6% to $1.57 billion in 2025 and grows organically in the low-single digits in 2026 and 2027;--EBITDA margins sustained around 17% over the forecast period;--Capital intensity of around 6% over the forecast period;--HLMN manages capital deployment in line with stated financial policies;--Effective interest rate of around 5%.RATING SENSITIVITIESFactors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade--A less conservative financial policy leading to EBITDA leverage sustained above 3.0x;--FCF margin in the low-single digits or lower;--The company experiences the loss of a large customerFactors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade-- Public commitment to a more conservative financial policy that leads to EBITDA leverage sustained below 2.5x;--The company achieves a more diversified portfolio of business lines and reduced customer concentration.Liquidity and Debt StructureAs of Sept. 30, 2025, HLMN had a total liquidity of $277 million, including $38 million in cash and $239 million of availability on its ABL facility, net of outstanding borrowings and letters of credit. Its liquidity is also supported by the company's expected FCF generation over the forecast horizon. Fitch considers the capital structure and maturity schedule to be relatively favorable with its nearest maturity being in 2027.Issuer ProfileHillman distributes hardware-related products and provides merchandising services to retail outlets, including hardware stores, home centers, and mass merchants. Its product offering includes fasteners, hardware, personal protective products key engraving and various self-service kiosks.REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG ConsiderationsThe highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.The Hillman Group, Inc.; Long Term Issuer Default Rating; Upgrade; BB; Rating Outlook Stable----senior secured; Long Term Rating; Upgrade; BB+Hillman Solutions Corp.; Long Term Issuer Default Rating; Upgrade; BB; Rating Outlook StableContacts:Primary Rating AnalystJoseph Fong,Director+1 646 582 3670joseph.fong@fitchratings.comFitch Ratings, Inc.33 Whitehall StreetNew York, NY 10004Secondary Rating AnalystAniello Infante,Associate Director+1 646 582 3450aniello.infante@fitchratings.comCommittee ChairpersonDino Kritikos,Managing Director+1 312 368 3150dino.kritikos@fitchratings.comMEDIA RELATIONS: Eleis Brennan, New York, Tel: +1 646 582 3666, Email: eleis.brennan@thefitchgroup.comAdditional information is available on www.fitchratings.comApplicable ModelNumbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).Corporate Monitoring &amp; Forecasting Model (COMFORT Model), v8.2.0 (1)ADDITIONAL DISCLOSURESDodd-Frank Rating Information Disclosure FormSolicitation StatusAdditional Disclosures For Unsolicited Credit RatingsEndorsement StatusEndorsement PolicyALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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HLMN

Fitch Ratings has upgraded Hillman Solutions Corp.'s Long-Term Issuer Default Ratings to 'BB' from 'BB-', with a stable outlook. The upgrade reflects reduced gross debt and expected EBITDA leverage between 2.5x and 3.0x. Hillman plans to focus on smaller acquisitions to support deleveraging. The company has managed tariff impacts by diversifying supply chains and passing costs to customers. Hillman maintains a strong market position in fasteners and protective solutions, with significant U.S. sales and key customer relationships with Home Depot and Lowes.

Fitch Upgrades Hillman Solutions to 'BB'; Outlook Stable